Bitcoin's correlation with the S&P 500 has recovered

In the recent period, Bitcoin's correlation with the S&P 500 has strengthened again. This change occurred in mid-August, when the correlation coefficient between the two rebounded and turned positive. This recovery may be related to the upcoming Federal Reserve FOMC meeting, where the market generally expects a large interest rate cut, which is generally beneficial to risky assets such as stocks and cryptocurrencies.

Key factors

Expectations of interest rate cuts: The expectation of interest rate cuts by the Federal Reserve has driven the increase in Bitcoin's correlation with the stock market. Investors' expectations of interest rate cuts have increased their preference for risky assets, including Bitcoin and stocks.

Bitcoin Miner Reserves: The reserves of Bitcoin miners are an important indicator. Santiment pointed out that Bitcoin miners' reserves have declined since the beginning of 2024. The recent mild rebound may be a signal of the next bull run.

Market Outlook

Miner Reserves: The decline in miner reserves and the recent rebound may indicate future market gains. Currently, miner flow is in the bottom area of ​​2024, which may indicate an upcoming market turning point.

Market trends: Combined with the expectation of interest rate cuts and changes in miners' reserves, significant market fluctuations may occur in the next few months.

Overall, the recovery of the correlation between Bitcoin and the S&P 500 index, as well as changes in miners' reserves, may be signals that the market is about to usher in a new round of trends.

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